Opportunity knocks

entrepreneurs

There are half a dozen different definitions of the word angel, and the most important to businesses in Oxfordshire is not among the front runners. Business angels - financial investors willing to champion the cause of cutting-edge entrepreneurs - play a crucial role in funding bright sparks who can run into a brick wall with bankers, either because their companies are too young, or because their business is high-tech and perceived to be too risky.

Most importantly, angels are willing to back their convictions with cash. Their enterprise in the county has become a focus of international attention.

One group which has helped spearhead the prosperity is the Oxfordshire Investment Opportunity Network, which has secured a record number of deals this year.

In 1998, six companies received investment totalling 1.5m through contacts made with OION, including a local television company, early-stage VDU and TV screen technology and an established engineering business.

In 1999 the network achieved seven successful deals - a record for OION and something that according to the British Venture Capital Association makes it one of the most successful networks in the country. Mr George Whitehead took over the management of the network almost a year ago and in that time a great deal has happened. This year has been spectacularly successful, with 18 deals.

One of the deals produced 10,000 for Oxford Sensory Development, now called Mindweavers. The Oxford University spin-out company, set up by psychologist Dr David Moore, has linked with computer games developers, neuroscientists and teachers to develop a pioneering computer program to help children with hearing problems,

Opsys, an Oxford University spin-off company in Begbroke developing new materials for small electronic displays on hand-held organisers and games, obtained second-round funding of 1m via the network.

Focusing on companies from the Oxfordshire area, the network has successfully matched more than 40 companies with investors since it was formed at the end of 1996.

Mr Whitehead said: "It is true we have had some extraordinary successes recently, but we are simply a mirror of the opportunities available in Oxfordshire at the moment. Technology has boomed here and there are some canny investors and quick-thinking companies who are ready to reap the rewards."

There are companies around Oxfordshire who need from £10,000 to £1m, in order to set them up for much larger funding or to get into production. Often these investments can be high risk, but the astute investor will note how the right one could create high gains, producing profits of millions of pounds.

He said: "Our investors tend to be experienced business people who have often successfully started up their own companies. They understand how large the profits can be if you get involved with the right company at the right time."

Since the network was founded, OION has received a total of about £100,000 of public money, the vast majority from Business Link Heart of England.

In the same time more than 7m has been invested directly as a result of introductions through OION. In recognition of this success, the Oxfordshire Investment Opportunity Network was presented with a certificate of merit from Business Link for 'Outstanding Contribution to Innovation'.

Mr Colin Alexander, the director of Business Link, is chairman of OION and companies can receive expert assistance from the Business Link financial adviser Mr Paul Coleman, whose background is in venture capital.

The network next meets at the Rutherford Appleton Laboratory, near Didcot, on November 28. Next year, nine presentation meetings will give more than 60 companies the chance to present to some of Oxfordshire's most active investors. Companies or investors interested should contact Mr Whitehead on 01865 811143 or e-mail oion@oxin.co.uk.

Business angels may languish in dictionary definitions between an old English coin and an unexplained radar echo, but they are right at the cutting edge of innovation.